Baba Food Processing IPO will open for subscription from 03 November 2023. The company aims for an issue size of ₹33 Cr through this IPO.
Company Overview
| Full name | Baba Food Processing Limited |
| Sector | Fast Moving Consumer Goods |
| Industry | Consumer food |
| Company Website | https://www.babafood.in/ |
About Company
Baba Food Processing is primarily engaged in the business of manufacturing fiber Whole Wheat Atta (Wheat Flour), Refined Flour (Maida), Tandoori Atta, and Semolina flour (Sooji). The company’s state-of-the-art manufacturing unit is situated in Ranchi and houses two divisions namely, high-fiber whole wheat atta division and refined flour division.
Its manufacturing unit is equipped with highly automated Buhler’s Swiss Technology Pesa Mill with an installed capacity of 200 Tons per day. Baba Food Processing also markets and sells Chickpea Flour (Besan) and Roasted Gram Flour (Sattu) under the brand ‘Panchakanya’, however, it procures these products from third-party manufacturers.
Baba Food Processing has established its presence in Jharkhand, Odisha, and West Bengal for marketing and sells the products directly to wholesalers and large retailers. During the three months ended 30 June 2023, revenue earned from local retailers accounted for 38.04% of the total revenue earned by the company.
The Objectives of the Issue
- Investment in our wholly owned Subsidiary, Panchakanya Foods Private Limited (“PFPL”) for setting up a manufacturing unit in Patna, Bihar, comprising an ultra-modern highly automated roller flour mill and chakki whole wheat atta mill (hereinafter referred as the “Project”);
- Funding purchase of machinery for manufacturing Chickpea Flour (Besan) and Roasted Gram Flour (Sattu) in our existing manufacturing unit in Ranchi;
- Funding working capital requirements of the Company;
- Prepayment or repayment of all or a portion of certain outstanding unsecured borrowings availed by the Company; and
- General Corporate Purposes.
Baba Food Processing IPO Timetable
| IPO Opening date | 03 November 2023 |
| IPO Closing | 07 November 2023 |
| Basis of Allotment | 10 November 2023 |
| Initiation Refund | 13 November 2023 |
| Credit to Demat Account | 15 November 2023 |
| Listing Date | 16 November 2023 |
Baba Food Processing IPO details
| Issue type | Book Built Issue IPO |
| IPO issue size | ₹33 Cr – 4,342,105 shares |
| Fresh Issue | ₹33 Cr – 4,342,105 shares |
| Offer for sale | Nil |
| Face value | ₹10 per share |
| Price Band | ₹72 to ₹76 per share |
| Lot size | 1600 Shares |
| Market Maker portion | 217,600 shares |
| Shareholding pre-issue | 12,000,003 |
| Shareholding post-issue | 16,342,108 |
| Listing Exchange | NSE SME |
Baba Food Processing IPO Lot Size
| Application | Lots | Shares | Amount |
|---|---|---|---|
| Retail (Min) | 1 | 1600 | ₹121,600 |
| Retail (Max) | 1 | 1600 | ₹121,600 |
| HNI (Min) | 2 | 3,200 | ₹243,200 |
Baba Food Processing IPO Reservation Details
| QIB Shares Offered | 2% |
| NII (HNI) Shares Offered | 29% |
| Retail Shares Offered | 69% |
Baba Food Processing Financial Performance
| FY 2021 | FY 2022 | FY 2023 | Q1 FY 2024 | |
| Revenue | 106.55 | 97.11 | 189.54 | 41.35 |
| Expenses | 104.60 | 94.75 | 182.66 | 38.62 |
| Net income | 1.98 | 2.01 | 5.03 | 1.92 |
Baba Food Processing Valuations & Margins
| FY 2021 | FY 2022 | FY 2023 | |
| EPS | 4.13 | 4.19 | 4.20 |
| PE ratio | – | – | 17.14 – 18.10 |
| RONW (%) | 12.02 | 10.08 | 20.14 |
| NAV | 34.35 | 41.59 | 20.83 |
| EBITDA (%) | 5.31 | 5.47 | 5.84 |
| ROCE (%) | 10.46 | 8.41 | 15.81 |
| Debt/Equity | 1.40 | 1.33 | 1.13 |
Company Promoters
- Yogesh Kumar Sahu
Promoter Holding
| Pre Issue Share Holding | 99.99% |
| Post Issue Share Holding |
Baba Food Processing IPO Lead Manager(s)
HORIZON MANAGEMENT PRIVATE LIMITED
19 R N Mukherjee Road, Main Building,
2nd Floor, Kolkata- 700 001, West Bengal
Tel No: +91 33 46000607
Email: smeipo@horizon.net.co
Website: www.horizonmanagement.in
Baba Food Processing Registrar
MAS SERVICES LIMITED
T-34, 2nd Floor, Okhla Industrial Area,
Phase – II, New Delhi -110 020, Delhi, India
Phone: +91 112 638 7281/83, 4132 0335
Email: info@masserv.com
Website: www.masserv.com
Baba Food Processing Contact Details
BABA FOOD PROCESSING (INDIA) LIMITED
6th Floor, Home Decor Building, Opposite Durga Mandir,
Ratu Road, Ranchi G.P.O., Ranchi – 834 001, Jharkhand
Phone: +91 915 519 2834
E-mail: cs@babafood.in
Website: www.babafood.in
Baba Food Processing IPO Allotment Status
Baba Food Processing IPO allotment status will be available on Mas Services’ website. Click on Mas Services IPO weblink to get allotment status.
Final thoughts
Baba Food Processing IPO is going to hit Dalal Street soon. applying for an IPO is purely a personal choice. study well about the company and subscribe if you are feeling good about the company. I hope this post will give you enough details to make a fundamental study of the company. learn well and make wise decisions.
Happy Investing
